Different contactless payments like smart cards, credit cards, debit cards, and key fobs work through radio-frequency identification system, which enables secure payment. These cards are embedded with antennas and chips that help making effortless transactions. This ease in transaction has attracted millions of customers from across the globe. Fast and safe transaction is helping the contactless payments market to make impressive growth in coming future. Strong possibility of rise in adoption and emergence of mobile based near-field communication technology are also creating stronger opportunities in the global market.
Segmentation in Contactless Payment Market
For a comprehensive study of the global market, contactless payments market is categorized into different segments and sub-segments. These segments cover all the vital components of an industry, making it easy for tracking the market trends, challenges, competition, opportunities and future prospects. Global contactless payments market is segmented on the basis of the types of payment modes, services, solutions, demand in different business verticals as well as geographic regions.
- Modes: Contactless smart cards, mobile handsets, and others
- Services: Integration, consultation, and value added services
- Solutions: Business management, payment terminal, anti-skimming, and card issuance
- Verticals: BFSI, healthcare, transportation, consumer goods, telecommunication, IT, public sector, etc.
- Geography: Europe, North America, Asia Pacific, North America, and Middle East and Africa
Rise in the number of smartphone users, innovative NFC technology, and constant improvements in the existing technologies are some of the strongest reasons for growth in the global contactless payments market. Rising demand for contactless payments technologies is driving mobile manufacturers to include advanced technologies in their phone. Impressive penetration of telecommunication and information technology also has strong influence on the global market. Banking, finance services and insurance companies are also making maximum use of this technology. As a result of all this, large enterprises as well as small and medium businesses are taking keen interest in the industry.
As per the market research reports, contactless payments market is projected to grow at an estimated CAGR of over 18% from 2013. At the expected compound annual growth rate, the market is expected to rise from $4.32 billion in 2013 and reach past $9.88 billion by the end of 2018. Increasing adoption of contactless technology, flexibility and safety integrations and rising investments from developing and developed markets are expected to be strong drivers as far as the future is concerned.